13/06/2016 - 11:07

Cradle, Ardiden raise funds

13/06/2016 - 11:07

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Local explorers Cradle Resources and Ardiden have announced plans to raise a combined $5 million to fund ongoing work at their respective projects.

Cradle, Ardiden raise funds
Cradle Resources chairman Craig Burton.

Local explorers Cradle Resources and Ardiden have announced plans to raise a combined $5 million to fund ongoing work at their respective projects.

Craig Burton-chaired Cradle has tapped investors for $2.16 million, through the placement of 8 million shares at 27 cents each.

The funds will be used for ongoing work at its half-owned Panda Hill niobium project in Tanzania.

The project is 50 per cent owned by Cradle, through subsidiary Panda Hill Tanzania Limited (PHT), which in turn wholly owns the project.

“This raising ensures Cradle is sufficiently funded to meet its likely working capital requirements until the Panda Hill project secures expected debt and equity funding and a decision to mine,” Cradle said in a statement.

“The working capital requirements include the final instalment of consideration owed to the project vendor due to be paid in September.”

Cradle’s share of the consideration is $US1.5 million ($A2.03 million.)

Ardiden has meanwhile closed an oversubscribed placement of 90 million shares at 3.2 cents each to raise $2.88 million.

The price of the raising was a 15.8 per cent discount to the company’s last trading price prior to commencement of the placement.

“As a result of this placement, Ardiden is now fully funded to progress and complete the due diligence assessment of the highly prospective Root Lake lithium project in Canada, which has already returned very encouraging drilling results,” Ardiden said in a statement.

Ardiden will also use the proceeds of the raising to fund exploration work at its Manitouwadge jumbo flake graphite project in Canada.

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